Aside from developing and manufacturing high performance electric vehicles, Tesla also sells their product in unique and different ways- at shopping malls. Imagine you are going to a mall to shop for holiday gifts and then you see this beautiful auto, right at the mall. It is very convenient, isn’t it?
There are a few reasons why Tesla decided to sell cars at malls:
- Easy to reach a wide crowd: “We want everyone — from kindergartners to grandparents — to come in and see for themselves why driving electric is the future.” (Tesla Borrows From Apple to Sell Cars)
- Tesla is borrowing Apple’s sales strategy. Tesla is creating a unique and upscale experience targeted at above upper middle school families, similar to what Apple has done. Tesla is trying to create a strong emotional connection with their brand, sell the quirky, intelligent lifestyle that they represent.
- People are willing to listen at the shopping malls. The company wants people to ask questions and be engaged. The company believes that sales people won’t be treated as car dealers if they sell their product at shopping malls (You Can Now Buy a $100,000 Tesla S at the…Shopping Mall).
- All stores will be factory-owned which allows the company to have absolute control over their entire sales channel (Tesla autos for sale in unexpected places)Do you think selling Tesla at shopping malls will succeed? Would you buy a $100,000 car at a shopping mall?
Do you think selling Tesla at shopping malls will succeed? Would you buy a $100,000 car at a shopping mall?
It is possible for buying a car in a shopping mall, but to me, I have to do many valutions before I make the decision. I noticed that many big shoppoing malls in Shanghai set up exhibition of cars， so that poeple can easily try and touch the cars during the shopping time. I think the strategy promotes people to having the idea of buying a car.
they idea of showing a car in a shopping mall is great! people can take a look at the car without going to the dealership. However, it is not for Tesla. It is expensive and and not every person in the mall can easily spend this amount of money on car(if any?). If Toyota, Subaru, BMW, Mercedes have models that cost 30-40 thousand dollars and it is a common car, it is fine to show such cars in the mall, but again, showing the car for $100,000 (I doubt if a lot of people in the US now about Tesla), is very strange. But, every method in the war is good.
Tesla is using a very interesting strategy that no other automaker is doing. They are using these stores to sell their cars direct instead of relying on a dealer network to sell their cars. Tesla is relying on the hope that placing their stores near shopping malls and luxury stores will help potential customers come in and view their cars. I was actually in one of the stores today, and the model they were showing starts at 50,000. It is a very sharp looking car and if they can keep the price of these cars down I think the car will sell very well.
This is the first I ever heard of having a dealership at a shopping center. I can see the purpose of it and I do believe it will bring curiosity and more customer interest on the cars. The thing is even if it brings more curiosity and leads people wanting to purchase, I don’t think that sales will be as high in that particular place. Most likely you would have that store really crowded with people who are just treating it like an AUTO SHOW. Especially if its at a mall where a high number of little kids usually hang out.nn For those who are looking to purchase would probably not like the overcrowdness or having to WAIT long to see the inside of a particular car.
I also have not heard of a dealership located in a shopping center. I do believe it is a good idea because shopping centers are usually located in highly populated areas. These areas are easy to get to and having a good location gets their name out. If people want to buy a car they will show up and learn more about the vehicle. Being able to get the Tesla name out into the public is key to driving sales. Obviously, the expensive car will be sold to those people who can afford it. These people will be able to get to these shopping centers and make the purchase. The large quantity of people who see the cars can spread, by word of mouth, hype about the cars. Overall, I believe selling the cars at a shopping center will be successful.
I swear I commented on this!
YES! I would, I live right by Oak Brook Mall and the Tesla store there is pretty cool. The cars are not all that expensive they have “lower end” models that cost the same price as any car in that sort of category. It makes total sense for a company like Tesla to do this, for them to setup shop like BMW, Porsche, Ferrari, Lexus etc you need to fill those lots with tons of cars and the demand is not there yet for Tesla, in the coming years this will become a very popular car option.
Opening locations in malls should allow Tesla to grow a base of loyal consumers and fans wanting to know the latest and greatest on electric Teslas. I believe Tesla is trying to sell a lifestyle and experience. By being next to the Apple’s, Nordstrom’s, Nieman Marcus’ and by being located in very high income communities, Tesla is selling the lifestyle and experience it wants to convey. I believe Tesla is doing a great thing by opening these shops as they are focusing on their target market.
If I had the money then sure! why not? As of right now, you can place a 100,000 dollar car where ever you want and I am not going to buy it! However, say its a used car dealership and they are setting up shop in a shopping mall, then that is a different case entirely. It has to do with the people in the area, and the clientele better be ready for this.
I agree that setting up a car dealership inside of a store front is a good idea and probably an effective one. johnl301s12 pointed out that it is also a good idea for a brand that does not have enough inventory to fill up a full-sized dealership, so this very well may become a trend for start up car companies or well known brands that are testing out a new model. Pop-up shops are definitely the new trend in sales when companies are unsure of the buying market. However, as a consumer, I am not sure I would ever purchase a car from a store in the mall. While it does provide a less expectant buying environment (since the dealers probably get more lookers than potential buyers) I would think there would be less options to choose from at a dealership like this. If I am going to make a large purchase like a car, I certainly want to see as many choices as I can.
I saw Lexus ES 350 on display in the local mall a while ago. It was mostly for marketing purposes, so that customers can take a look at and see if they want to purchase it in the near future. However, I wouldn’t pay that much money to buy a car at a shopping mall. That’s just not right; you have to research the product of such value before you purchase it.
I like this idea simply for its uniqueness. However in my opinion Tesla would be more successful if they also opened few regular dealerships. They offer a very unique product, electric cars. U.S. and worlds car industries move into electric motoring in a fast manner. Currently almost every car brand in U.S. launched their version of electric vehicle. Tesla limiting their product only to shopping malls is wrong, besides there is very little amount of people who can afford to be an impulse shoppers and spend $100,000 on a new car. Traditionally, people tend to do research, come in to a dealership few times and test drive the actual car. However, I also think that this is a genius marketing strategy, their product is exposed to literally every age group and every social class.
I have never heard of a car dealership nestled in the center of a shopping mall but I believe it can be a very strong tactic for Tesla. From what I know about Tesla, they are a very innovative company similar to Apple. As a consumer, I would not feel the pressure of walking into a Tesla dealership and being swarmed by salesmen because I can walk right out and continue my shopping throughout the mall. This is a very interesting idea that Tesla is borrowing sales strategies from Apple. I wonder if they will size their stores large enough in order for shoppers to test their products much like Apple does with their stores and customers.
Setting up car dealerships in a shopping mall is an effective approach to sell cars. It alleviates the pressure of having to deal with car salesmen that will hassle all the money that they can get from the buyer. Having a showroom in the mall where there is constant high traffic plants the idea of buying a new car into the minds of consumers that otherwise were not thinking about it. Tesla executes a hands on approach, encouraging people of all ages to come in, look, feel and get educated about their product. A vehicle like the Model S requires education. The consumer needs to be informed about things like, ‘How much are you actually saving by driving an electric car?’ By having stores in the mall, Tesla is bringing awareness to a mass market. I would definitely stop in to a Tesla store if they had one around here.
I actually watched a television special on Tesla and I do believe they will succeed. They have a unique selling technique by having their automobiles be in a mall setting. While some may argue that having such an expensive car in the middle of a mall will not attract customers, it is important to note that Tesla is in mall locations that are higher-end.
Tesla may be an expensive car but offers so many unique features, that I know it will be successful.
I believe it is a good strategy to place cars in malls because no one tends to plan to buy a car unless they are exposed to the car and to the unique features it brings. Personally, i like to shop for unique distinguished cars meaning i would target rang rovers, Porsche, Bentley, Ferrari, and such cars would not be at such a mall due to being expensive. Regardless of my ways of shopping for cars, i believe setting cars for shopping at a mall is a good strategy to pull in buyers.
The idea of displaying cars in the middle of the mall isn’t new, but for a high-end electric car with a price tag of $100,000.00 is out of the ordinary. The sales wouldn’t be high as expected, but the publicity for the company would be incredible. Many people are intimidated by high end car dealerships, but Tesla marketing strategy will give people the chance to check out the car without the formalities. This strategy will also help different type of consumers learn about the company profile and types of cars Tesla offers. An average person going to the mall is not planning on spending $100,000.00 on a car, but having the information and hands on experience would be an interesting one to remember, courtesy of Tesla!